Barnes enterprises has bonds on the market making annual payments, with 14 years to maturity, a par value of $1,000, and a price of $967. at this price, the bonds yield 7.9 percent. what must the coupon rate be on the bonds?

The coupon rate on the bonds is 7.50%.

The current price of a bond is nothing but the discounted value of the coupon payments and the face value at the yield or YTM.

Hence, mathematically the bond's price is given by the formula:

where,

CMP = Current Market Price of the bond

C    = Coupon in dollars

r      = YTM

n     = number of years to maturity

FV = Face Value

Substituting the values in the equation above we get,

Solving further we get,

\mathbf{C = 75.02042315}

Since the dollar value of coupons is $75.02042315, we can calculate the coupon rate on the bonds as:

ans.

heterothermic organisms include those organisms that can switch between homeothermic (having body temperature higher than environment) and poikilothermic (having variation in internal body temperature) strategies.

some migratory birds show heterothermy as they decrease their metabolic rate during cold nights to keep their body temperature low. drop in metabolic rate allows increase in production efficiency of birds that reduces the internal body temperature to make it equal to external cold temperature during cold nights.

thus, the correct answer is 'birds allow their temperature drop in order to increase their production efficiency.'